Bloomberg, a global leader in financial data and analytics, has unveiled significant enhancements to its climate solutions suite.
This initiative is designed to equip investors with the tools necessary to evaluate whether companies are on track to meet their carbon emission targets, the credibility of these targets, and the potential impacts on their revenues under various climate transition scenarios.
The purpose of enhancing Bloomberg’s climate solutions suite is to provide investors with a more detailed and forward-looking perspective on transition risks. These enhancements include new capabilities to assess the future revenue risks and opportunities that different climate pathways might present, utilising in-depth data from BloombergNEF (BNEF).
Bloomberg’s core function is to deliver data-driven insights and analytics to finance professionals worldwide. This is exemplified by their comprehensive approach to climate risk assessments, which are now bolstered by the expanded suite.
The newly enhanced product includes tools that help investors align their portfolios with their stated net zero goals. This is achieved through a suite that allows for the evaluation of how companies’ revenue may change under various transition scenarios projected by BNEF’s New Energy Outlook.
Additional enhancements to the suite include the introduction of the Transition Risk Assessment Company Tool (TRACT), which for the first time is available on the Bloomberg Terminal and via Data License. TRACT helps project revenue risks and opportunities for over 70,000 companies by combining their business activities, supply chain exposures, and regional footprints with forecasts of demand shifts under different climate scenarios.
Other notable enhancements include the expansion of the Net Zero data suite, which helps financial firms measure and evaluate the credibility of companies’ transition plans. This suite is now accessible for scalable enterprise-wide use through Data License, demonstrating Bloomberg’s commitment to supporting comprehensive transition risk assessments.
“Less than a quarter of global emissions fall under an actual carbon pricing scheme. Sector and region-specific technology competition drives the transition, often rendering carbon intensity irrelevant, such as in sectors where no alternatives exist, like steelmaking or aviation. At BNEF we developed the TRACT model to fill this gap and provide clients with a granular approach to transition risk assessments”, BloombergNEF Chief Operating Officer Alexandra Toft said.
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